SEPTA To Implement 11% Fare Increase On July 9

More Extensive 24% Fare Increase, 20% Service Cut and Layoffs Would become Effective September 2 if Funding Crisis is Not Resolved

June 28, 2007

PHILADELPHIA, PA  — During its regular monthly meeting today the SEPTA Board approved a proposal based on recommendations from SEPTA staff and the SEPTA 2008 (FY 08) Operating Budget Hearing Examiners Report to implement an 11% fare increase on July 9 in an effort to begin to partially address the expected shortfall in the proposed budget.

Three quarters of the 15 member Board voted today to overturn a veto of the proposal made by the two City of Philadelphia Board members during the May Board meeting.

Facing a projected budget deficit of $150 million on a proposed operating budget of $1.022 billion, SEPTA initiated a number of actions that have resulted in a reduction in the budget shortfall to $129 million. In addition, SEPTA held a series of public hearings in April to provide details of the proposed budget plans to resolve the shortfall based on the receipt of additional state subsidies as well as without added state funding.

To address the shortfall the Board approved Budget Plan A (Simplification Fare Proposal) which includes an 11% fare increase effective July 9 that will generate $35 million in additional revenue while SEPTA will continue to seek an additional $94 million in state subsidy. Under Plan A there will be no increase in the base cash fare or for tokens and the number of regional rail zones will remain unchanged. Transfers, however, will be discontinued effective August 1. By taking these actions SEPTA on its own has addressed more than one-third of its operating budget shortfall.
New Fare Information

Plan A is also consistent with the recommendations of the PA Transportation Funding and Reform Commission which calls for a “Partnership of Actions” to address the serious public transportation funding issues in the Commonwealth. Both the State Transportation Funding and Reform Commission and the HR 538 Transportation audit recommended that SEPTA implement periodic fare increases.This will be the first SEPTA fare increase since 2001.

As part of the proposal, the Board also agreed that SEPTA will be forced to implement the extreme and drastic measures proposed in Budget Plan B (Simplification Fare Proposal) if the Authority does not receive additional state subsidies. Plan B includes a 24% fare increase that will generate $69 million in additional revenue and a 20% across the board service reduction that will save $60 million in expenses.The plan would result in a ridership loss of approximately 20% or 40 million annual trips. In addition, as part of Plan B about 1,000 SEPTA jobs would be eliminated.Plan B will be implemented on September 2, 2007 if necessary.

Neither the SEPTA Board or staff consider Plan B to be in the best interests of the region and the Commonwealth.The proposal suggests that the plan should only be considered and implemented as a matter of last resort should the Legislature and Governor not reach an agreement on a long term funding plan for transit in the state. Subsequently, the Board agreed that the implementation of Plan B be delayed until fall in order to provide the parties additional time to reach an agreement.

BUDGET PLAN A (SIMPLIFICATION FARE PROPOSAL)

• Fares increased by an average of 11% on July 9
• Cash Base Fare remains $2.00
• Transfers to be discontinued effective August 1
  
  

TRANSIT DIVISIONS

Tokens 
                       $1.30                                         $1.30

Transfers
                       $0.60                                      discontinued
                                                                  effective August 1

Weekly Pass
                     $18.75                                        $20.75

Monthly Pass
                     $70.00                                        $78.00

Day Pass
                       $5.50                                         $6.00

REGIONAL RAIL